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    If the price of a commodity be raised by 10%, find out by how much per cent must a householder reduce his consumption of that commodity, so as not to
    Question

    If the price of a commodity be raised by 10%, find out by how much per cent must a householder reduce his consumption of that commodity, so as not to increase his expenditure.

    A.


    B.


    C.


    D.


    Correct option is B

    Given:
    The price of the commodity be raised by 10%.
    Solution:
    Let the price of 100 units of the commodity be Rs. 100.
    After raise, the price of 100 units of the commodity = 100 + 100 × 10%
    => Rs. 110
    At Rs. 100, the amount of commodity that can be purchased
    => 100/110 × 100
    => 1000/11 units
    Now, consumption reduction% =


    By 

    householder must reduce his consumption of that commodity, so as not to increase his expenditure.

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